Polaski Company manufactures and sells a single product called Ret. Operating at full capacity, the company can produce and sell 30,000 Rets per year. Costs associated with this level of production and sales are given below: The Rets normally sell for $50 each. Fixed manufacturing overhead is $270,000 per year within the range of 25,000 through 30,000 Rets per year. 1. Assume due to a recession, Polaski Company expects to sell only 25,000 Rets through regular channels next year. A large retail chain offered to purchase 5,000 Rets if Polaski will provide a 16% discount off the regular price. There will be no sales commission on this order; so variable selling expenses will be slashed by 75%. However, Polaski would have to purchase a special machine for $10,000 to engrave the retail chain's name on the 5,000 units. Polaski Company has no assurance that the retail chain will purchase additional units in the future. So, it could be a onetime transaction. What is the financial advantage or disadvantage of accepting the special order? 2. Refer to the original data. Assume Polaski Company expects to sell only 25,000 Rets through regular channels next year. The U.S. Army would like to make a one-time-only purchase of 5,000 Rets. The Army would reimburse Polaski for all of the variable and fixed manufacturing costs assigned to the units by the company's absorption costing system in regular production situation, plus an additional fee of $1.80 per unit. Because the Army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order. What is the financial advantage or disadvantage of accepting the U.S. Army's special order? 3. Assume the same situation as described in (2) above, except that the company expects to sell 30,000 Rets through regular channels next year. Thus, U.S. Army's order would require giving up regular sales of 5,000 Rets. Given this new information, what is the financial advantage (disadvantage) of accepting the U.S. Army's special order